Bill > HB1372

This bill creates a comprehensive regulatory framework for litigation financing in North Dakota, establishing detailed requirements for companies that provide funding to plaintiffs in civil legal actions. The bill requires litigation financers to obtain a license from the state's commissioner of financial institutions, maintain a surety bond of at least $50,000, and maintain a minimum net worth of $25,000. Litigation financers are prohibited from various practices, including accepting commissions, influencing legal decisions, providing legal advice, or recovering more than 36% of a judgment or settlement. The bill mandates specific disclosures in financing contracts, including a five-day right of cancellation and clear statements about the financer's limited rights. Additionally, the legislation includes extensive provisions for regulatory oversight, allowing the department of financial institutions to investigate, examine, and take enforcement actions against non-compliant litigation financers. Violations of the law can result in civil penalties up to $100,000 per occurrence and potential criminal charges, with any violated contract becoming unenforceable. The bill specifically aims to protect consumers by ensuring transparency, limiting potential predatory practices, and establishing clear rules for litigation financing transactions.

Business and Industry

https://ndlegis.gov/assembly/69-2025/regular/bill-overview/bo1372.html